Today, Standard & Poor’s (S&P) released December 2015 values for its Case-Shiller Home Price Index, which tracks the prices of existing single-family homes in 20 U.S. metro areas. The index in each metropolitan area extends from a base value of 100 in January 2000. For example, Chicago’s December 2015 index value was 129.84 before seasonal adjustment; this translates to a 29.84 percent appreciation since January 2000 for a typical home in the Chicago market.
- All 20 cities tracked and both composite indices showed positive year-over-year returns. In Chicago, the index increased 2.4 percent from 126.77 in December 2014 to 129.84 in December 2015. This was an improvement over last month’s YOY growth rate of 2.0 percent.
- Chicago was among nine cities that experienced negative monthly rates of change. Chicago’s December 2015 home price level decreased by -0.41 percent from the previous month, also falling behind the 10-City and 20-City Composites’ respective -0.06 and 0.02 percent growth rates.
- In a press release, Standard & Poor’s Index Committee Chairman David M. Blitzer noted housing as part of an strong overall consumer portion of the economy. He observed that, “While home prices continue to rise, the pace is slowing a bit. Even with some moderation, home prices in all but one city are rising faster than the 2.2% year-over-year increase in the CPI core rate of inflation.”
Source: S&P/Case-Shiller Home Price Indices
Note: The full press release and additional data can be found on the S&P website. Values reflect non-seasonally adjusted data, which are typically more appropriate for annual comparisons than monthly ones; however, due to heightened volatility in recent housing values that can skew the seasonal adjustments, S&P recommends using the non-seasonally adjusted numbers, even for month-to-month comparisons.
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